Tag: business

John Stroup, President & CEO of Belden Inc., explains the major global trends driving investment in automation for manufacturing. Some factors contributing to automation’s increased adoption are rising labor costs, the need for increased productivity, and changing consumer behaviors.

Automation enables manufacturers to become better at producing to meet consumer demand because it significantly shortens changeover, resulting in greater flexibility. Stroup goes on to explain that, due to rising labor costs in Asia, many manufacturers are moving production to the United States and using automation to replace human labor. Productivity is more elusive than ever in the current post-recession landscape, which increases the need to focus on maximizing productivity and ROI.

All of these factors are generating a great deal of interest in the adoption of automation in manufacturing—a process Stroup says will be “evolutionary, not revolutionary.” Stroup estimates automation adoption will reach 74% in 6-10 years. The automotive industry is already at that mark.

For more supply chain digital content and cutting-edge research, check us out on the socials [@theboeingcenter] and download our app on iOS or Android for access to exclusive content and events!


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A Boeing Center digital production

The Boeing Center

Supply Chain  //  Operational Excellence  //  Risk Management

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One of the biggest challenges in the healthcare industry is reducing operating costs, and one area of opportunity for cost savings is through the supply chain. In part two of our interview with Jean-Claude Saghbini, Chief Technology Officer at Wolters Kluwer Health (and formerly of Cardinal Health), we focus on technology implementation in the healthcare supply chain. Be sure to check out part one of our interview with Saghbini.

Saghbini explains that although the push to utilize RFID and other inventory management technology initially came from early adopters, he is coming to find that the implementation of such resources is becoming necessary to manage all healthcare networks as they continue to grow. He finds that one of the key benefits realized by hospitals investing in new technology is significant cost savings via inventory reduction. Oftentimes, the reduction in inventory can be as high as 20-25%, which translates to millions of dollars. He also notes a decrease in expiration rates, better product tracking to patients, and an increase in patient safety resulting from enhanced technology utilization. All of these factors can add up to a 150-300% return on investment annually, not just for hospitals, but for device manufacturers as well.

Saghbini also talks about the benefit of RFID’s ability to integrate data across an entire healthcare network (for example, electronic medical records and hospitals’ material management systems). He is also exploring ways to leverage RFID in ways that allow communication with near-field communication in patients’ cell phones. If the two similar technologies are effectively integrated, it would allow the healthcare supply chain to be tracked all the way to the consumer.

For more supply chain digital content and cutting-edge research, check us out on the socials [@theboeingcenter] and download our app on iOS or Android for access to exclusive content and events!


• • •

A Boeing Center digital production

The Boeing Center

Supply Chain  //  Operational Excellence  //  Risk Management

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Blockchain is an emerging technology that has the potential to create a paradigm shift in the way we think about financial transactions. It has the ability to record transactions via a shared ledger and can be applied across many industries and currencies. The first major application of blockchain was Bitcoin, an unregulated cryptocurrency that was very resource intensive to mine. But business applications for blockchain will likely differ in several key areas.

At The Boeing Center’s 9th annual Industry Conference in October, Ed Corno, Client Technology Leader at IBM, gave a presentation on blockchain from the IBM perspective. He claimed that the technology’s business applications will focus on identity over anonymity, selective endorsement over proof of work, and assets over cryptocurrency.

Ed Corno, Client Technology Leader at IBM

Corno defines the four key tenets of a shared, replicated, permissioned ledger (as characterized by blockchain’s business applications) are consensus, provenance, immutability, and finality. This shared ledger would serve as the one record of all transactions across the business network, and participants would be able to see only relevant transactions.

According to Corno, the requirements of blockchain for business are the aforementioned shared ledger, a smart contract embedded into the transaction database, the privacy to ensure that transactions are secure and verifiable, and trust between all participants.

For more supply chain digital content and cutting-edge research, check us out on the socials [@theboeingcenter] and download our app on iOS or Android for access to exclusive content and events!


• • •

A Boeing Center digital production

The Boeing Center

Supply Chain  //  Operational Excellence  //  Risk Management

Website  • LinkedIn  • Subscribe  • Facebook  • Instagram  • Twitter  • YouTube


Technology is changing the landscape of supply chain at a breakneck pace, and organizations that are able to stay ahead of the curve often enjoy a significant advantage over their industry competitors. Digitization, cloud computing, big data, Internet of Things, and artificial intelligence are all major factors in shaping operational strategy. These manufacturing innovations have given rise to a trend dubbed Industry 4.0.

John Stroup, President and CEO of Belden Inc., paid a visit to The Boeing Center to share his wealth of knowledge, and to give a brief history of Industry 4.0, aka the Smart Factory. He explained that Industry 4.0, a term coined in Germany, is the fourth major iteration in manufacturing processes. “‘Smart Manufacturing,’ ‘Intelligent Factory,’ and ‘Factory of the Future’ all describe an intelligent, flexible, and dynamic production facility, where machinery and equipment will have the ability to improve processes through self-optimization and autonomous decision-making,” said Stroup. The major improvements from 3.0 to 4.0 are the ability to automate complex tasks (even remotely) and the access to data across the whole supply chain that allows for greater flexibility and connectivity.

Stroup went on to discuss the key characteristics of the Smart Factory and how innovations in digital technology have improved existing business models and enabled new ones. Such innovative technology allows for improved productivity, flexibility, and decision making, all of which benefit manufacturers and consumers alike.

For more supply chain digital content and cutting-edge research, check us out on the socials [@theboeingcenter] and our website [olin.wustl.edu/bcsci]

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A Boeing Center digital production

BCSCI

Supply Chain // Operational Excellence // Risk Management

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With more than ten thousand dollars at stake, student teams competed in the first-ever Project of the Year Symposium, hosted by The Boeing Center for Supply Chain Innovation (BCSCI), on May 17 at Washington University. The BCSCI symposium featured the top five corporate mini-consulting projects executed via our Center in the 2016-2017 academic year. The top prize, $5,500, for Best Project of the Year was awarded to the Emerson team. A second award, $3,000, was given to the Belden team for a project that demonstrated the greatest immediate business impact.  A third award. $2,000, was given to the Monsanto team for delivering the best presentation. All winning teams will be inducted into the Boeing Center Projects Hall of Fame.

Each student team had 15 minutes in front of a panel of judges composed of BCSCI advisory board members and representatives.

While all of our project teams (a total of 15 corporate projects) did an excellent job this year, these five demonstrated a particularly high level of execution, which set them apart. We are grateful to all of our member companies for providing us with interesting and challenging projects, and to all the students who worked on Boeing Center projects this year.

A special thanks goes out to our judges and board members in attendance: Greg Krekeler (Boeing), Mike Woerner (Edward Jones), Eric Carlson (Emerson), Marcelle Pires (Monsanto), Becky McDonough (Monsanto), and of course our own Sergio Chayet (WashU) and Panos Kouvelis (WashU & BCSCI Director). We look forward to developing more innovative supply chain solutions in the fall semester!

Representing this academic year’s projects in the competition were:

ABI student team: Serena Chen, Xinyue Du, Marcus Lei, Yanyan Li, and Cauthen Mordente.

Anheuser-Busch InBev  |  Fall 2016

The Anheuser-Busch InBev team’s project revolved around optimizing the inventory mix at distribution centers for some of ABI’s craft beer products. The need to achieve shipping efficiency by shipping full truckloads is a challenge when lower volume craft beers are involved. It is also important to maintain high service levels of performance when delivering to wholesalers.

The team utilized simulation models to support either the use of higher inventory levels at the distribution center, or shipping lower volume and higher volume beers on the same truck to achieve higher service levels for craft beers.

Belden  |  Spring 2017

Panos Kouvelis with Belden student team: Bonnie Bao, Michael Stein, Yuying Wang, and Yuyao Zhu.

The award for the “Greatest Immediate Business Impact,” with impressive overall cost savings to the company, was given to the Belden team.

The Belden team used the continuous review modeling approach, together with concepts of ABC analysis and market uncertainty, to identify opportunities for lowering costs and improving service levels at PPC, a Belden subsidiary in Syracuse, NY. The proposed decision support spreadsheet will be immediately implemented by the company, and will result in substantial savings. This project delivered the most immediate business impact.

Boeing  |  Spring 2017

Student team: Vineet Chauhan, Phil Goetz, Brian Liu, Sontaya Sherrell, and Fan Zhang.  

The Boeing team’s goal was to determine the most influential order and part characteristics affecting suppliers’ on-time delivery statistics of Boeing’s transactional spare parts business.

Emerson  |  Spring 2017

Student team: Kushal Chawla, Serena Chen, Kai Ji, Jeffrey Lantz, and Zoe Zhao, pictured at top of page.

The judges determined that the Emerson team had delivered the best overall project performance (problem solution, business impact, and presentation), and was declared “Project of the Year” winner.  The Emerson project team worked with ProTeam’s Richmond Hill facility to determine the optimal product mix, optimize inventory management of stock, and develop a data analysis model to facilitate future upkeep of the system. This was a well-executed project, with rigorous analysis and strong presentation by the team.

Monsanto  |  Spring 2017

Student team: Hai Cao, Yanyan Li, Ashwin Kumar, Jonathan Neff, Tom Siepman, and Xukun Zan.

Finally, the Monsanto team’s goal was to understand, define, and map out the credit processes within Monsanto. The audience enjoyed this team’s excellent presentation. The Monsanto team impressed the judges with the quality of its work and its exceptional presentation, and received the “Presentation Excellence” award.

Boeing Center Symposium photo gallery • click here

For more supply chain digital content and cutting-edge research, check us out on the socials [@theboeingcenter] and our website [olin.wustl.edu/bcsci]

• • •

A Boeing Center digital production

BCSCI

Supply Chain // Operational Excellence // Risk Management

Website  • LinkedIn  • Subscribe  • Facebook  • Instagram  • Twitter  • YouTube


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